Slide 1: Kiena Complex Preliminary Economic Assessment
Kiena Complex Preliminary Economic Assessment May 2020
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (colle
Slide 3: Technical Disclosure
Technical Disclosure The reader is advised that the PEA summarized here is intended to provide only an initial, high-level review of the project potential and design options. The PEA mine plan and economic model include numerous assumptions and the use of Inferred Mineral Resources. Inferred Mineral
Slide 4: Building Canada's Next Mid-Tier Gold Producer
Building Canada’s Next Mid-Tier Gold Producer Proven building blocks to increase shareholder value New high-grade gold discovery in permitted, de- watered former producing mine Low risk expansion of existing mines in proven mining camps Assets in top rated jurisdictions – Ontario and Quebec TSX:WDO
Slide 5: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • 2019 Production: 91,688 Ounces (upwards revised guidance: 88,000 – 93,000 ounces) • 2020 Guidance: 90,000 – 100,000 ounces • Eagle River Mine free cash flow generation of $48.4 M 3 1 2 1 • Eagle River Operations funding mine expansion projects a
Slide 6: Kiena Complex, Val d'Or, Quebec
Kiena Complex, Val d’Or, Quebec • Mine on care and maintenance since mid-2013 • 2,000 TPD permitted mill • 930 Metre shaft • Ramp system to 1050 m • Underground fully accessible • Past production 1981 – 2013 12.5 Mt @ 4.5 g/t = 1.75 M ounces produced TSX:WDO | 6
Slide 7: Kiena Complex Mineral Resources, September 2019
Kiena Complex Mineral Resources, September 2019 Kiena Mineral Resources Proximal to Mine Development (A, B, Resources – Kiena Deep A Zone only South, VC and S 50 Zones – includes A Zone table) Category Tonnes Grade Contained Ounces Category Tonnes Grade Contained Ounces (g/t Au) (g/t Au) Measured -
Slide 8: Mineral Resources
Mineral Resources B Zone Longitudinal Looking North TSX:WDO | 8
Slide 9: Highlights of the Kiena Complex PEA
Highlights of the Kiena Complex PEA • After-tax IRR of 102% • Gross revenue of $1.4 billion • Total LOM After-tax free cash flow of $595 million • After-tax NPV (discount rate 5%) $416 million • All-in sustaining costs $674 per ounce • Total Unit Operating Costs $163 per tonne • Preproduction Capita
Slide 10: Summary of 43-101 PEA
Summary of 43-101 PEA Price of Gold Mining Extraction (DSO) USD $1,532/oz or CAD $ 2,016/oz ➢ 90% Kiena Deep Zones Wesdome engaged independent firm CPM Group to provide long- term gold price projections for the PEA. . CPM has provided ➢ 80% VC, S-50, South, B Zones independent gold price projections
Slide 11: Underground Development
Underground Development ➢ $76M in Capital Development ➢ 33,500 metres (lateral & vertical) ➢ Dev Productivity varies by zones ➢ ~90% development in VC & Kiena Deep ➢ Starts in 2021; Ore to be stockpiled Kiena Deep Zone ➢ 50% of total dev ➢ 7 mining front ; 35 levels ➢ ~11m/day ➢ One main ventilation
Slide 12: LOM Production
LOM Production ➢ Development ends in 2025 (some in 2027) ➢ Production from other zones ends in 2026 ➢ Kiena Deep ends mid-2029 TSX:WDO | 12
Slide 13: Mining Production – Tonnes By Year
Mining Production – Tonnes By Year ➢ ~80% tonnes from Kiena Deep (~650 tpd) ➢ Average 684 tpd; 240K t/y ➢ High 870 tpd ; 310K tonnes TSX:WDO | 13
Slide 14: Production Forecast
Production Forecast 13.4 g/t 11.2 g/t 12.5 g/t 9.7 g/t 9.2 g/t 9.3 g/t 14.8 g/t 8.1 g/t 5.8 g/t ➢ 91% ounces from Kiena Deep ➢ 709,000 ounces mined TSX:WDO | 14 ➢ 687,500 ounces recovered
Slide 15: Operating Costs
Operating Costs ➢ Definition drilling cost included ($4/t) ➢ COG 2.52 g/t TSX:WDO | 15
Slide 16: Capital Costs
Capital Costs ➢ ~$160M (including ~$35M in preproduction) ➢ AISC $674/oz ➢ 25% contingency in some items ➢ Sunk costs of $8.9M ➢ $3.0M additional for closure (bond) TSX:WDO | 16
Slide 17: Mine Capital Costs
Mine Capital Costs ➢ $70M lateral & $6M vertical ➢ $21M mobile equipment ➢ $11M construction (escape way, service shop refuge station ➢ $4M infrastructure Kiena Deep TSX:WDO | V/R 17
Slide 18: Mill and Tailings Management Facility Capital Costs
Mill and Tailings Management Facility Capital Costs ➢ $20M ➢ ~$4M at the mill ➢ ~$16M new TMA (dry-stacking) and water treatment facility ➢ Drainage water to be pumped into the North basin ➢ New surface waste dump required TSX:WDO | 18
Slide 19: Sensitivity After Tax NPV (5%)
Sensitivity After Tax NPV (5%) *project most sensitive to gold price and exchange TSX:WDO | 19
Slide 20: Next Steps
Next Steps ➢Resource conversion (inferred to indicated) ➢Proceed to PFS ➢Metallurgical testwork ➢Geotechnical drilling and analysis ➢Mine and Ventilation design ➢TMA and water treatment design ➢Funded internally TSX:WDO | 20
Slide 21: In-Mine Exploration – 7 drills, 85,000 m in 2020
In-Mine Exploration – 7 drills, 85,000 m in 2020 • A Zone - extends down plunge in excess of 830 m • 164 new drill holes for 48,000 m since September 2019 MRE TSX:WDO | 21
Slide 22: Regional Exploration
Regional Exploration Regional Exploration team Established Compilation of Historic Data, Airborne Mag survey, MT survey New exploration concepts – new targets to test TSX:WDO | 22
Slide 23: Summary
Base case: Gold price USD $ 1,532/0z After-tax IRR 102% After-tax NPV (discount rate 5%) CAD $416 million Preproduction Capital Cost CAD $ 35 million Sustaining Capital Cost CAD $ 121 million Site Closure Cost CAD $ 3 million After-tax Payback period (after start of operations) 17 Total Tonnes Mined
Slide 24: Appendix
APPENDIX
Slide 25: Kiena Polygonal Resources (Not Incl in PEA)
Kiena Polygonal Resources (Not Incl in PEA) TSX:WDO | 25
Slide 26: Kiena Polygonal Resources (Not Incl in PEA)
Kiena Polygonal Resources (Not Incl in PEA) TSX:WDO | 26
Slide 27: Kiena Deep A Zone and Similar Exploration Potential
Kiena Deep A Zone and Simila Exploration Potential TSX:WDO | 27
Slide 28: Kiena Complex – Location, Location, Location!
Kiena Complex – Location, Location, Location! Property Size: 65 Square Kilometres TSX:WDO | 28